Neighborhood Ventures announced that Neighborhood Ventures Real Estate Income Trust (“NV REIT” or “the REIT”) has entered into a definitive agreement to acquire its first property, Venture on Williams. The acquisition will be through an equity buyout valued at $5 million or $250,000 per unit, which implies a 5.5% forward twelve-month cap rate.
Venture on Williams, a 20-unit apartment building located in Mesa, Arizona, was initially purchased by Neighborhood Ventures in 2020 with capital the company raised through investor crowdfunding. NV REIT will benefit from the 3.8% interest rate debt already on the property, and all Venture on Williams investors will receive their full principal investment plus a 12% annual preferred return, or have the option to roll their proceeds into the REIT.
As of today, Venture on Williams is 100% occupied and cash flowing, which means NV REIT will be paying investors their first 5% annual distributions beginning in April.
“We are excited to have reached an agreement that will make Venture on Williams the first project under the NV REIT,” says Jamison Manwaring, Co-founder and CEO of Neighborhood Ventures. “This project is favored by investors for its prime location near downtown Mesa and because of its attractive unit mix of two and three bedroom units. The acquisition is a great representation of the types of multifamily properties we will be adding to the NV REIT portfolio.”
The transaction is expected to be complete on February 28, 2023, subject to customary closing conditions and approvals.
NV REIT is Neighborhood Venture’s first nationwide offering which provides a unique real estate investment opportunity to accredited and non-accredited, individual investors of all income levels. With a target amount of $50 million based on a minimum investment of $1,000, the REIT will purchase cash-flowing assets and invest in developing Multifamily dwellings in the Sun Belt and Mountain West regions.
Neighborhood Ventures offers investment opportunities to accredited and non-accredited individual investors of all income levels, with a minimum investment amount of just $1,000. Since inception, the company has sponsored more equity crowdfunding offerings than any other real estate investment company nationwide. To date, the group has purchased 13 properties and sold five of them, paying investors a 12% preferred annual return on their investments on each of them.